Maverix Metals Inc (NYSEAMERICAN:MMX) (TSE:MMX) (FRA:7781) has provided an update on its royalty assets, which bode well for the company's organic growth, including Karora Resources Inc's (TSE:KRR) (OTCMKTS:KRRGF) (FRA:5RN1) plans to double output at the Beta Hunt mine in Australia.
At the latter, Maverix holds a 4.75% gold royalty and 1.5% nickel net smelter royalty (NSR). Due to increased throughput, the production capacity at Beta Hunt is expected to double from the current rate of around 75,000 to 85,000 tonnes per month (tpm) to 160,000 to 170,000 tpm by the end of 2024, noted Maverix.
READ: Maverix Metals says it has acquired a portfolio of royalties from Pan American Silver
Meanwhile, at the Koné project in Ivory Coast, where Maverix holds a 2% NSR, Montage Gold Corp (CVE:MAU) (OTCMKTS:MAUTF) announced in May the results of a preliminary economic assessment (PEA), which outlined an 11 million tonne per annum operation with an average annual production of 205,000 ounces of gold.
The mine life was pegged at 14.7 years, generating an after-tax net present value at a 5% discount rate of US$652 million at a US$1,600 per ounce gold price.
At the Enchi gold project in Ghana, where Maverix has a 2% NSR, Newcore Gold (CVE:NCAU) (OTCMKTS:NCAUF) (FRA:PI8) announced an updated PEA, showing an open pit, heap leach operation producing an average of around 90,000 ounces of gold per year over 11 years.
That generates an after-tax net present value at a 5% discount rate of US$212 million and a 42% internal rate of return (IRR) at a US$1,650 per ounce gold price.
"Recently, there have been several announcements related to assets where we hold a royalty interest, which bode well for our future organic growth," said Dan O'Flaherty, CEO of Maverix.
"In particular, the planned expansion to double production at Beta Hunt and the results of a preliminary economic assessment at Koné highlight the potential to add significant revenue and attributable gold equivalent ounces for Maverix in the near-term, at no additional cost.
"Additionally, we are pleased to announce that our 2021 Asset Handbook is now available on our website and invite everyone to learn more about our diverse portfolio of royalties and streams."
The report is available to read at maverixmetals.com.
Contact the author at giles@proactiveinvestors.com